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How will the following affect the size of the firms optimal investment in current assets? a. The interest rate rises from 6 percent to 8

How will the following affect the size of the firms optimal investment in current assets? a. The interest rate rises from 6 percent to 8 percent. b. A just-in-time inventory system is introduced that reduces the risk of inventory shortages. c. Customers pressure the firm for a more lenient credit sales policy.

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